LPL Investment Holdings Earnings: General Economy Helping Advisors

LPL Investment Holdings’ (NASDAQ:LPLA) saw profit rise in the first quarter. LPL Investment Holdings Inc. provides brokerage & investment advisory services through business relationships with financial advisors, financial advisors employed by financial institutions, registered investment advisors & financi institutions.

Don’t Miss: Wall St. Cheat Sheet’s newest Feature Trades of the Month!

LPL Investment Holdings Earnings Cheat Sheet for the First Quarter

Results: Net income for LPL Investment Holdings rose to $49 million (43 cents/share) vs. $25.6 million (25 cents/share) in the same quarter a year earlier. A rise of 91.7% from the year earlier quarter.

Revenue: Revenue was $873.9 million last quarter.

Actual vs. Wall St. Expectations: LPLA fell short of the mean analyst estimate of 48 cents/share. Estimates ranged from 42 cents per share to 55 cents per share.

Quoting Management: “We began the year with solid results, driven primarily by the increased activity of our advisors,” said Mark Casady, LPL Financial chairman and CEO. “Improving investor sentiment and market conditions provided a strong backdrop for our advisors to grow their businesses. To help our financial advisors capitalize on this opportunity, we have continued to expand and enhance our investment platforms and practice management tools and programs. The launch of a fee-based variable annuity option in the first quarter is a powerful example of our ability to leverage our relationships with leading product manufacturers to create an innovative offering allowing advisors to deliver active portfolio management efficiently while maintaining the income protection features of variable annuity products. Additionally, resources such as our new client relationship management tool from Salesforce.com and our portfolio rebalancing solution, which enables advisors to more efficiently rebalance multiple accounts, are helping our advisors to increase their productivity and spend more time and effort on growing their businesses.”

Competitors to Watch: Raymond James Financial, Inc. (NYSE:RJF), The Charles Schwab Corp. (NYSE:SCHW), Ameriprise Financial, Inc. (NYSE:AMP), Financial Engines Inc (NASDAQ:FNGN), Morgan Stanley (NYSE:MS), FXCM Inc (NYSE:FXCM), TD Ameritrade Holding Corp. (NASDAQ:AMTD), Investors Capital Hldgs. Ltd (AMEX:ICH), Stifel Financial Corp. (NYSE:SF), and optionsXpress Hldgs., Inc. (NASDAQ:OXPS).

Today’s Performance: Shares of LPLA are down 0.17% in after hours trading.

Don’t Miss Wall St. Cheat Sheet’s newest Feature Trades of the Month!

More from The Cheat Sheet